T.RAD carries a reputation as a solid auto components player with a value tilt, yet the tape has been unforgiving. The stock closed at ¥1,267 on 2 November, with the past month down about 14% and the last quarter weaker again.
Against that backdrop, the Q2 2027 figures delivered a different message. Revenue reached ¥42,535 million and basic earnings per share came in at ¥38.79, leaving trailing earnings on a P/E of 8x. The story here is less about the headline growth and more about the pressure that multiple now carries against peers and payout expectations.
Like the look of T.RAD’s low 8x P/E but worried that value pricing sometimes signals deeper quality issues? Check our 17 high quality undervalued stocks for ideas that combine value-style multiples with stronger fundamentals.
Q2 2027 Earnings Summary
- Revenue (Q2 2027 vs. Q2 2026): ¥42,535 million vs. ¥38,390 million (up about 10.8%)
- Net Income (Excl. Extra Items, Q2 2027 vs. Q2 2026): ¥2,197 million vs. ¥1,957 million (up about 12.3%)
- Basic EPS (Q2 2027 vs. Q2 2026): ¥38.79 vs. ¥32.76 (up about 18.4%)
- Trailing 12-Month Net Income (Excl. Extra Items, Q2 2027 vs. Q2 2026): ¥9,006 million vs. ¥7,622 million (up about 18.2%)
Ask Charlie what makes T.RAD look undervalued versus its earnings.
Solid Q2 print keeps T.RAD’s bull case alive
For a stock framed as a steady industrial, T.RAD’s Q2 2027 results lean supportive for a constructive stance. Revenue of ¥42,535 million and net income of ¥2,197 million both sit above the prior Q2, while basic EPS moved to ¥38.79. Trailing 12 month profit of ¥9,006 million also runs ahead of the earlier period. That combination signals a business still generating higher earnings from its thermal management niche even as the share price has fallen over the past quarter.
Bear case tempered, not erased by current trends
Concerns around cyclicality and legacy auto exposure do not fully recede here, but the earnings profile makes near term stress look less acute. Net income excluding extra items improved to ¥2,197 million and trailing profit reached ¥9,006 million, both higher than a year earlier. EPS growth to ¥38.79 points to better per share profitability despite the share price decline of about 17% over 90 days. For a supplier often treated as ex growth, that divergence keeps the bearish narrative from being cleanly validated by the latest numbers.
One loose thread is the 6.47% dividend, which current free cash flow does not fully cover. That can look harmless in a good year yet turn into a pressure point if cash generation softens or capital needs rise unexpectedly. Before assuming this is a one off quirk, review the full risk analysis for T.RAD which shows 1 important warning sign
Hunt Balance Sheet Clues
T.RAD’s recent quarter shows earnings moving differently to the share price as investors reassess fundamentals. The real opportunity is finding stocks that could be low debt before the market corrects them.
- Company 1 - 17% below our estimate - expands its sales force to secure more long-term maintenance contracts and denser territories.
- Company 2 - 48% below our estimate - shifts sales incentives toward recurring subscriptions as its security platform draws customers into higher value bundles.
- Company 3 - 40% below our estimate - builds AI tools that match job ads and local services to paying customers using data flows.
Those are three of them. See all 22 companies with the balance sheet to back it up →
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